4. Yamashita Inc. accumulated the following cost information for its two products, A and B PRODUCT A PRODUCT B Units produced 1,000 2,000 5,000 Total direct labor hours 20,000 Set-up cost per batch Batch size P 1,000 P 2,000 100 50 Total set-up cost incurred Direct labor hour per unit P20,000 P40,000 2 1 A traditional costing system would allocate setup costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. What is the setup cost per unit of Product A under each costing system? Traditional Costing P 4.80 P 2.40 P 40 P 4.80 АВС P 10 P 10 а. b. c. P 200 d. P 20

4. Yamashita Inc. accumulated the following cost information for its two products, A and B PRODUCT A PRODUCT B Units produced 1,000 2,000 5,000 Total direct labor hours 20,000 Set-up cost per batch Batch size P 1,000 P 2,000 100 50 Total set-up cost incurred Direct labor hour per unit P20,000 P40,000 2 1 A traditional costing system would allocate setup costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. What is the setup cost per unit of Product A under each costing system? Traditional Costing P 4.80 P 2.40 P 40 P 4.80 АВС P 10 P 10 а. b. c. P 200 d. P 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Adoption of Activity based costing?
Describe accounting and presentation for research and development and similar costs.
Discuss the history of ABC method (Use references if you use any) Define the following with examples: a) Activity Rate b) Cost Driver
A 'product' cost is a cost that is classified by: a. behavior b. function c. controllability d. relevance
Cost Accounting verity more from Financial Accounting? True Flase
What information is contained in a product structure diagram?
Define total carrying cost (TCC)